PANRF - Panoramic Ships First Bulk Concentrate from Savannah
Panoramic Resources (ASX:PAN,OTC Pink:PANRF) has sent off the first shipment of bulk nickel-copper—cobalt concentrate from its Savannah project in Western Australia’s Kimberley region.
The shipment, which set sail for Lianyungang, China on Wednesday (February 13), consisted of 7,735 wet metric tonnes of the concentrate; the company says the preliminary invoice value was approximately AU$8.6 million.
“It is wonderful to see Savannah concentrate being shipped again from Wyndham,” Panoramic Managing Director Peter Harold said in a statement.
“This is a significant milestone in the recommissioning of the mine and processing plant at Savannah and I would like to thank the team at Savannah for their efforts to get the project going again.”
Savannah was originally commissioned by Panoramic in late 2004 for $65 million, but was later placed on care and maintenance in May 2016 due to a decline in nickel pricing.
In late 2017, the company delivered an updated feasibility study, later locking down an offtake customer, project financing and making an official decision to restart operations in mid-2018.
The company also bought and restarted the Lanfranchi nickel project near Kambalda in 2005, putting it on care and maintenance around the same time as Savannah. Panoramic opted to sell Lanfranchi in December 2018 for $15.1 million, and put the money towards supporting Savannah’s reopening.
Ramp up to full production at Savannah is expected to take 15 months, and the asset is set to see life-of-mine average annual production of 10,800 tonnes of nickel, 6,100 tonnes of copper and 800 tonnes of cobalt metal in concentrate over its estimated 10-year mine life.
Despite the positive news, Panoramic’s share price closed 3.3 percent lower on the ASX on Friday (February 15), ending the day at AU$0.44.
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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.